Do You Realize How Good The Elite Hedge Funds Really Are?

For years I worked behind the scenes.

I saw the kinds outsized investment returns that the richest people in America were receiving simply because they were rich.

I saw the outsized investment returns that these fat cats received only because they had the $1 million minimum investments required to enter the most elite hedge funds.

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Image Source: AP

The hedge funds that 99 percent of us aren’t allowed to invest in.

That always rubbed me the wrong way.

So I decided that I’m going to do something about it.

I decided to become the Hedge Fund Insider for the other 99 percent.

I’m going to steal the very best ideas from these elite hedge funds and give them to the other 99 percent.

And guess what?

Because I’m going to give these ideas to you directly… don’t have to pay the massive fees that the elite hedge fund managers charge their investors. Fees that are typically 2 percent of assets and 20 percent of profits.

Fees that the ultra-rich one percent have to pay to invest in those funds.

By getting these “best of the best” investment ideas directly without paying those fees the retail investor isn’t able to just match the returns that these elite hedge funds provide…….the retail investor can beat them!

By investing this way that gives the 99 percent the advantage over the 1 percent who are directly invested in those funds and are paying their 2 and 20 fees.

The only caveat I have is that when I steal these ideas and give them to you there is going to be a price. I’m going to serve you some tough love.

Starting right now.

You Can’t Compete With These Guys – So Stop Trying And Start Stealing!

Look. I’ve got a healthy ego.

In fact I consider myself a bit of a Wall Street Robin Hood.

I steal from these fat cat hedge funds and give to you.

Delusions of grandeur? Perhaps.

Where I don’t have an ego however is when it comes to investing my money. I know that I can’t compete with the hedge fund elite so I don’t even try.

Neither should you.

If you are honest with yourself you know that you can’t possible match the investment returns of a guy like Third Point Capital’s Dan Loeb.

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Image Source: Reuters

Since his hedge fund Third Point Capital launched in 1995, the fund has generated average net annualized returns of 18%. That has smashed the 10% annualized return of the S&P 500 over that same period.

But even that undersells the true investing ability of Loeb. What you need to realize is that the 18 percent annualized number is the net return to his fat cat hedge fund investors…….AFTER FEES.

Before fees Loeb’s true investment performance is closer to 25 percent annualized over this time period than it is to 18 percent. He has more than doubled the market.

Why are Loeb’s returns so good?

Well, consider that:

  • He is incredibly smart
  • His entire large research team is also incredibly smart
  • They all do this full time
  • Because they have billions so invest they have direct access to management
  • Because they have billions to invest they can influence corporate decision making

Do I need to go on? How is the retail investor supposed to compete with someone like Dan Loeb and Third Point Capital?

Then answer is that the retail investor can’t compete. More importantly the retail investor shouldn’t compete.

Instead the retail investor should steal from Dan Loeb. The retail investor should take his best ideas and not have to pay his fees.

That is where I come in….the self-proclaimed Robin Hood of Wall Street. I’m going to take Dan Loeb’s best ideas and given them to you.

Coming Up Next – A Brand New Activist Investment From Dan Loeb

A big part of Dan Loeb’s investment success comes from the fact that he can influence the Board of Directors of the company he invests in.

His recipe for success is simple. He has Third Point take a large position in a company and then agitates for action that will boost a company’s share price.

He has had success with some very large companies including:

Yahoo!: Third Point helped create approximately $15 billion of value for shareholders; share price increased over 85% while Third Point directors served on the board from May 2012 until July 2013

Baxter: Third Point helped create approximately $26 billion of value for shareholders through 9/20/18; share price increased 144% while Third Point directors have served on the board since September 2015

Dow: Third Point helped create approximately $51 billion of value for shareholders through 9/20/18; share price increased 107% since Third Point began engaging with Dow Chemical in November 2013

These activist positions are a big reason why Loeb’s Third Point has been able to compound money at a rate of nearly 25 percent for more than two decades.

In my next article I’m going to serve up to you Dan Loeb’s most recent activist position….but you don’t need to pony up the usual $1 million minimum investment that Loeb would usually charge you to have it!

It is time to start investing like the one percent, but not paying up to do it.